Let’s face it: everything appears to be becoming more expensive. Our bank accounts are shrinking while prices are soaring.
For many, the cost of a McDonald’s Happy Meal no longer makes us feel happy, the goal of owning a home has been reduced to a dream, and the price of cars and clothing makes us thankful that remote work has become more common.
Consumers are grappling with significant unpredictability, which is also impacting the industries they usually purchase from.
Take the automotive industry as an example. Those in the market for a vehicle are facing elevated prices and limited supply.
According to FOX 4 KDFW, the instability is due to several factors, including the impact of the COVID-19 pandemic on supply chains and the inflationary pressures leading to increased expenses for new and pre-owned vehicles.
As a result, many might wonder which is the better option: buying a vehicle through a dealership or a private seller.
To uncover expert opinions, FOX 4 begins an in-depth exploration of this very subject:
Why are car prices inflated right now?
According to Tom Maoli, owner of Celebrity Motor Car in New Jersey, “Prices are astronomically inflated in the car market. Used cars are high, new cars are high, interest rates are high. So it’s very difficult for the consumer.”
Maoli explains that the current inflation levels have significantly influenced where and how consumers choose to buy their cars.
He noted that the lack of supply, driven by ongoing supply chain disruptions still felt from the COVID-19 pandemic, is a primary driver of this inflation.
“When COVID hit, a lot of factories were shut down, and many places were put out of business. The supply chain still hasn’t fully recovered, and that’s driving prices up,” Maoli said.